Gold Rockets Toward $5,600 as Fears of U.S.–Iran Conflict Ignite Haven Demand

Gold prices surged to fresh record highs on Thursday, climbing close to the $5,600-an-ounce mark as investors rushed into safe-haven assets following reports that U.S. President Donald Trump is considering a new military strike on Iran.

Spot gold jumped more than 2% to a record $5,595.41 an ounce, while April gold futures touched $5,625.89. Although prices eased slightly from their peaks, bullion remained firmly above $5,500 by early Asian trading.

The rally extended across precious metals. Silver hit a historic high above $119 an ounce, while platinum also advanced sharply. Copper joined the surge, climbing to a record high on the London Metal Exchange, underscoring a broad flight into physical assets.

The move reflects intensifying geopolitical anxiety, compounded by a weak U.S. dollar and lingering uncertainty over Washington’s policy direction. “Gold is no longer just a crisis hedge or an inflation hedge; it is increasingly viewed as a neutral and reliable store of value across a wide range of macro regimes,” OCBC analysts said, noting that recent pullbacks have been shallow and well-supported. The bank recently lifted its 2026 gold forecast to $5,600.

According to a CNN report on Wednesday evening, Trump is weighing a “major new strike” on Iran after talks over Tehran’s nuclear and missile programs stalled. The report follows the deployment of U.S. naval forces to the Middle East and a series of warnings from the president, who has urged Iran to agree to a “fair and equitable” deal and abandon its nuclear ambitions.

Trump also cautioned that any future U.S. action would be more severe than the mid-2025 strikes on Iranian nuclear facilities. The prospect of renewed military action has fueled fears of wider instability in the Middle East, with Iran vowing strong retaliation against any attack.

These developments have reinforced gold’s role as the market’s primary refuge. Tensions tied to U.S. actions in Venezuela earlier this month and Trump’s earlier standoff over Greenland had already driven investors toward havens, and the Iran headlines intensified that trend.

The rally continued even after the Federal Reserve left interest rates unchanged, as expected. While the central bank struck an upbeat tone on the U.S. economy, Chair Jerome Powell declined to address questions over the Fed’s independence amid a Justice Department investigation—adding another layer of uncertainty for markets.

Elsewhere in metals, spot platinum rose 2.6% to $2,775 an ounce, staying near recent highs. Copper futures on the LME jumped more than 6% to a record $14,123 a tonne, aided by both the haven bid and reports of fresh policy support for China’s struggling property sector—a key driver of global copper demand.

With geopolitical risks mounting and confidence in financial assets wavering, investors appear increasingly anchored to tangible stores of value, pushing the precious metals complex into uncharted territory.